The study of ultrasonic properties of water-based magnetic fluid EMG-605 is presented. The measurements of velocity and attenuation of ultrasound were carried out as a function of temperature, frequency, magnetic field strength and the angle between the wave and the direction of magnetic liquid. The model takes into account mutual interaction of magnetic clusters giving skeleton’s stiffness and interaction of clusters with free liquid producing attenuation and dispersion of waves for transversally isotropic system. A good agreement between experimental data and the predictions of theoretical model was obtained.